GBP/NZD Up 8 Pips On 4 Hour Chart, in a Downtrend Over Past 90 Days; Pin Bar Pattern Appearing on Chart

GBP/NZD 4 Hour Price Update

Updated June 30, 2020 09:08 PM GMT (05:08 PM EST)

GBP/NZD is up 8 pips (0.04%) since the last 4 hour candle (opening the current 4 hour candle near 1.92), marking the 4th candle in a row an upward move has occurred. Relative to other instruments in the Forex asset class, GBP/NZD ranked 20th the last 4 hour candle in terms of percentage price change.

GBP/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of GBP/NZD continues; to start today, it came in at a price of 1.9151, up 2 pips (0.01%) since the previous day. Compared to its peers in the Forex, GBP/NZD gave its buyers a return that ranked 29th in terms of percentage change since the previous day. The price chart of GBP/NZD below illustrates.

GBP/NZD Technical Analysis

Notably, the current price of GBP/NZD is sitting close to its 20 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 202.1 pips away. Volatility for GBP/NZD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 10 days GBP/NZD’s price has gone up 5 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPNZD, with 9 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 0.82, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

https://www.tradingview.com/x/6bFMauR6/ GBPNZD was steadily going down within a falling channel last week….now it is bulls’ turn to try:if bulls violate this area to the upside, it will confirm the breakout of a falling channel and for us, it will be a good buying signal….wait for the 4H breakout of the decision area and buy on retest aiming at:1.9241.928in case of a bearish violation of the decision area, it will be a selling signal, and our setup will be invalid.